It’s commonly said that renovations increase the value of a home. While some projects, like kitchen or bathroom updates, can boost resale value, not all renovations are guaranteed to be profitable. Here’s a look at when renovations make sense financially and when they don’t.
Focus on energy efficiency
In Belgium, investing in energy-efficient renovations, like upgrading insulation or installing solar panels, can significantly boost a home’s value. Homes with a strong energy performance certificate (PEB A) often sell for much more than those with lower ratings. For example, properties with high PEB ratings can see increases of up to €70,000 compared to similar, less efficient homes.
Beware of costly projects
Large-scale projects, such as installing a pool or adding a luxury extension, may not offer the return on investment you expect. In climates like Belgium’s, a pool may add little value, and in some cases, personalized luxury upgrades can alienate potential buyers if they don’t match broad market preferences.
Regional differences matter
The profitability of renovations can also depend on the property’s location. For example, homes in Flanders may benefit more from energy improvements than those in Wallonia, due to stricter regulations. Additionally, in more rural areas, authentic features like exposed beams or stone walls may be more desirable than modern upgrades.
Final thoughts
While renovations can add value to a property, it’s important to focus on improvements that align with local market demands and have a clear financial benefit. Consulting with a real estate expert can help you choose the most profitable upgrades for your home.
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